$761,000: Milk marketing regulation

Editor's note: This is part of an everyday series looking at line items in state and local budgets.

RICHMOND — The state of Virginia spends nearly $761,000 a year on "milk marketing regulation."

That's not marketing like advertising. Virginia is not responsible for "Got Milk?" commercials.

This is about regulating the price of milk via the Virginia Milk Commission, which has existed since 1934.

The commission can license distributors, set wholesale prices, set floors and ceilings for retail prices, and generally regulate the sale of milk.

"Milk may be the most highly regulated agricultural product, except maybe wine and beer," said Elaine Lidholm, spokeswoman for the Virginia Department of Agriculture and Consumer.

Why? There's a lengthy discussion about this on the commission's website.

Milk is perishable. There's a low profit margin on it, the website says. We need a stable supply and relatively flat prices from place to place.

"A stable market is required to avoid dramatic shifts in the supply of milk due to the attractiveness of price in one market over another," the commission says on its website. "This process is known as dumping. It results in creating surpluses in one market and shortages in another. The price of milk is controlled to maintain an orderly market and avoid disruptions in supply."

Plus, children drink this stuff. The Virginia General Assembly, and the courts, have consistently held that milk is so important to the general welfare of Virginia that it "is subject to the police power of the state," according to the commission.

Fain can be reached by phone at 757-525-1759.

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